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By Myrna Trauntvein Nephi City Council members passed a resolution for the purpose of raising the natural gas fees to establish a stabilization fund. “The city has a single resolution for the purpose of setting forth a general schedule of the most common fees charged by Nephi City, the Master Fee Schedule,” said Seth Atkinson, city administrator. “We need to amend the schedule.” He said that the fee needing to be amended was the natural gas fee so that, in case of a quickly rising rate, the city will be able to protect it’s users by using the rate stabilization fund. “The fee will go into effect on the customer’s bill in December,” said Atkinson. UMPA (Utah Municipal Power Agency) had a similar electric stabilization fee that goes to help consumers avoid fluctuations in the market. It is a hedge rate. Natural gas usage is measured primarily in therms for billing purposes, “The average home uses 100 therms in the winter months,” said Travis Worwood, council member. “If that is the case, a home would see an increase of about $3 to their bill.” “That is not much,” said Skip Worwood, council member. A therm measures the heat energy content of the gas, equal to 100,000 British Thermal Units (BTUs). “Our customers will see a decrease in their monthly bill because the price of gas is lower,” said Atkinson. “The customer will not see a difference.” Having a stabilization or hedge fund might mean that gas brokers would see the city in a more favorable light and, therefore, might be willing to broker for one year rather than the standard three, he said. He said that in December of 2023 there was an unexpected raise in gas supply prices. That was something that had an effect on the city and its customers. This stabilization fee would protect customers because there would be money set aside for such occurrences. “We will have a stabilization fund in five years,” said Atkinson. Natural Gas Utility Fee Rate Stabilization Fund Rate $0.03 per CCF. (meters often track the volume in CCF--hundred cubic feet--or MCF--thousand cubic feet). One CCF of natural gas is equal to about one therm. The base rate for hedged rates that became effective on November 18, 2025 will reflect on the master fee schedule. That $0.03 per CCF fee was hereby adopted and enacted as of the effective date on the resolution. “This Resolution is to be construed to be consistent with any and all State, County and Federal laws and regulations concerning the subject matter hereof. If any section, sentence, clause or phrase of this Resolution is held invalid by any court of competent jurisdiction, then said ruling shall not affect the validity of the remaining portions,” reads the resolution. “I like it,” said S. Worwood. “I will make the motion that we adopt the resolution.” Jeramie Callaway, council member, made the second and all voted in favor. |
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